First United Corporation operates as the bank holding company for First United Bank & Trust that provides various retail and commercial banking services to businesses and individuals. The company offers various deposit products, including checking accounts, savings and money market accounts, regular and individual retirement accounts (IRA) certificates of deposit, Christmas savings accounts, college savings accounts, and health savings accounts; Certificate of Deposit Account Registry Service program and Insured Cash Sweep program to municipalities, businesses, and consumers; and commercial customers packages, which include treasury management, cash sweep, and various checking opportunities. It also provides loans, such as commercial loans secured by real estate, commercial equipment, vehicles, or other assets of the borrower; commercial real estate loans for residential and commercial development, agricultural purpose properties, and service industry buildings; residential mortgage loans; home equity lines of credit; residential real estate construction loans; and indirect and direct auto loans, student loans, term loans, and other secured and unsecured lines of credit and term loans. In addition, the company offers various trust services, including personal trust, investment agency accounts, charitable trusts, retirement accounts that consist of IRA roll-overs, 401(k) accounts and defined benefit plans, estate administration, and estate planning services; insurance products; brokerage services; and safe deposit and night depository facilities. It operates 26 banking offices, one customer care center, and 34 automated teller machines in Allegany, Frederick, Garrett, and Washington counties in Maryland; and in Mineral, Berkeley, Monongalia, and Harrison counties in West Virginia. First United Corporation was founded in 1900 and is headquartered in Oakland, Maryland.
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Here are 1-3 brief analogies for First United (FUNC):
- A community-focused Bank of America.
- A smaller, regional version of PNC Bank.
- The neighborhood bank version of JPMorgan Chase.
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- Deposit Accounts: Provides a variety of checking, savings, money market, and certificate of deposit accounts for individuals and businesses to manage their funds.
- Lending Services: Offers diverse loan products including commercial, residential and commercial real estate, construction, and consumer loans to individuals and businesses.
- Wealth Management: Delivers comprehensive financial planning, investment management, and trust and estate administration services to help clients manage and grow their assets.
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First United Corporation (symbol: FUNC) operates primarily as a community bank, providing a wide range of financial services. As such, it does not have a few "major customers" in the traditional sense of large companies that account for a significant portion of its revenue. Instead, its customer base is diverse and primarily consists of individuals and businesses within its operational footprint.
The company primarily sells to individuals and businesses, which can be categorized as follows:
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Individual Consumers: This category includes individuals and families who utilize services such as checking accounts, savings accounts, certificates of deposit, residential mortgages, home equity loans, personal loans, and credit cards.
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Businesses (Small to Mid-sized): This category encompasses various commercial clients, including small and medium-sized businesses, professional practices, and non-profit organizations. They primarily use services such as commercial loans (including commercial real estate and commercial and industrial loans), business checking and savings accounts, treasury management services, and lines of credit.
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Wealth Management and Trust Clients: This category includes high-net-worth individuals, families, and institutions seeking investment management, financial planning, estate planning, and trust administration services through First United's wealth management division.
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The management team members of First United (symbol: FUNC) are as follows:
Carissa L. Rodeheaver, Chairman of the Board, President & Chief Executive Officer
Carissa L. Rodeheaver has served as the Chairman of the Board, President, and Chief Executive Officer of First United Corporation since January 1, 2016. She was appointed CEO in November 2012. Ms. Rodeheaver has over 29 years of experience in the banking industry. She began her career in public accounting, then transitioned to private accounting for an oil-and-gas company and Bausch & Lomb before joining First United as a trust administrator. She became Chief Financial Officer in 2004 and has led teams in wealth management, credit underwriting, and finance. In January 2023, she was elected Treasurer for the American Bankers Association (ABA) for a two-year term.
Tonya K. Sturm, Senior Vice President & Chief Financial Officer, Corporate Secretary & Treasurer
Tonya K. Sturm holds the position of Senior Vice President and Chief Financial Officer, as well as Corporate Secretary and Treasurer for First United Corporation.
Robert L. Fisher II, Senior Vice President and Chief Revenue Officer
Robert L. Fisher II serves as the Senior Vice President and Chief Revenue Officer for First United Corporation.
Julie Peterson, Senior Vice President and Chief Credit Officer
Julie Peterson is the Senior Vice President and Chief Credit Officer at First United Corporation.
Jason B. Rush, Senior Vice President and Chief Operating Officer
Jason B. Rush serves as the Senior Vice President and Chief Operating Officer for First United Corporation.
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Increased Competition from Digital-First Banks and Fintech Companies: Regional banks like First United are facing growing pressure from online-only banks (neobanks), payment platforms, and other financial technology (fintech) firms. These digital competitors often offer lower fees, higher interest rates on deposits, and more seamless digital experiences, attracting customers who might otherwise use traditional banks. This trend erodes market share, particularly among younger demographics, and forces traditional banks to invest heavily in technology to remain competitive, which can be challenging for smaller institutions.
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Intensified Competition for Deposits: In a higher interest rate environment, customers are increasingly rate-sensitive and willing to move their deposits to institutions offering better yields, including online-only banks and money market funds. This puts pressure on First United and similar regional banks to raise their deposit rates, which increases their funding costs and can compress net interest margins. Failure to compete effectively for deposits can lead to deposit outflows, constraining lending capacity and profitability.
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First United Corporation (symbol: FUNC) operates as a bank holding company for First United Bank & Trust, offering a range of financial products and services. Its primary offerings fall under community banking and wealth management segments.
Addressable Markets for First United's Main Products and Services (U.S. Region)
Community Banking
The addressable market for community banking services in the U.S. shows varying estimates. The U.S. community banking market was valued at approximately $6.35 billion in 2024, with a projected compound annual growth rate (CAGR) of 3.8%. Other estimates indicate the community banking market was around $16.76 billion in 2024, expanding to approximately $17.79 billion in 2024 and $19.39 billion in 2025, with a projected CAGR of 9.0%.
Within community banking, First United offers various lending products, including mortgage loans and commercial loans.
- Mortgage Market: The total residential mortgage debt in the U.S. amounted to $12.94 trillion as of the second quarter of 2025. For newly originated purchase mortgages, the U.S. market is valued at $1,145.4 billion, with a projected CAGR of 6.3%.
- Commercial Lending Market: The commercial lending market in North America was estimated to be $985.6 billion in 2023. Globally, the commercial lending market size was valued at $9.7 trillion in 2023 and is expected to grow to $10.68 trillion in 2024, with projections reaching $23.06 trillion by 2032.
Wealth Management
The U.S. wealth management market is a significant segment. The Assets Under Management (AUM) in the Americas wealth management market are projected to reach $67.75 trillion by 2024. More broadly, the United States is estimated to hold 54.2% of the total global AUM, which reached $162 trillion in 2025. Based on this, the U.S. share of global AUM in wealth management would be approximately $87.79 trillion in 2025. The global wealth management market revenue was approximately $1,636.83 billion in 2024, with North America contributing about two-thirds of this revenue. This suggests an approximate revenue market size of $1.09 trillion for North America in 2024.
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First United (FUNC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market trends:
- Loan Growth: The company anticipates stronger growth in its loan portfolio, supported by robust loan pipelines. Gross loans increased by $21.7 million in the first six months of 2025, with management expecting stronger growth in the second half of the year. Historically, the value of loans on First United's books consistently increased from 2022 to 2024, growing from $1.26 billion to $1.46 billion.
- Expansion of Wealth Management Services: Growth in wealth management income is a significant driver, propelled by improving market conditions, increased annuity sales, and the expansion of new and existing customer relationships. First United offers diverse services, including wealth management with $1.7 billion in assets.
- Improved Net Interest Margin (NIM) and Disciplined Pricing Strategies: An increase in net interest margin (NIM) and effective pricing strategies for financial products are crucial for enhancing revenue. The company's net interest margin rose from 3.10% in the first quarter of 2024 to 3.55% in the first quarter of 2025, contributing to growth in net interest income. Disciplined pricing has also led to a significant increase in net income.
- Operational Efficiency and Expense Control: While primarily affecting profitability, First United's focus on operational efficiency and effective expense control indirectly supports revenue growth. Improved management of costs and enhanced earnings quality have led to net profit margins increasing to 29.8% from 22.7% in the prior year. This efficiency allows for sustained financial momentum and a stronger competitive position.
- Strategic Initiatives and Digital Transformation: First United's strategic plan aims for consistent growth and increased profitability. The company is focused on advancing its digital capabilities to build stronger customer relationships and capitalize on market opportunities within its operational footprint, positioning itself for long-term success.
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Share Repurchases
- First United authorized a new stock repurchase program in August 2024 for up to 600,000 shares, representing approximately 9.3% of its issued and outstanding common stock, valid for 18 months.
- In August 2023, a share repurchase program was authorized for up to 825,000 shares, which constituted 5% of the issued and outstanding shares, valid for 12 months.
- During 2024, the company purchased and retired 201,800 shares of its common stock at an average price of $19.99 per share.
Share Issuance
- The number of basic outstanding shares increased from 6,471,096 at December 31, 2024, to 6,478,634 at March 31, 2025, and further to 6,494,611 at June 30, 2025.
- A director acquired shares totaling approximately $2,123 through a dividend reinvestment program in February 2025, indicating a method of share issuance.
Outbound Investments
- First United holds significant limited partnership interests in Liberty Mews Limited Partnership and a non-voting membership interest in MCC FUBT Fund, LC, both dedicated to acquiring, developing, and operating low-income housing units in Maryland.
- The investment portfolio increased by $9.6 million in the first six months of 2025, attributed to the purchase of bonds to gain yield.
- In the fourth quarter of 2023, the Corporation restructured its investment portfolio, incurring $4.2 million in losses, with the aim of reinvesting in higher-yielding loan production.
Capital Expenditures
- First United plans to invest in strategic hires and enhanced technology, particularly for electronic banking, in Q1 2025, expecting increased salaries, benefits, and data processing expenses.
- During the first six months of 2025, "Other assets," which includes premises and equipment, increased by $4.0 million.
- The company's strategic priorities include improving efficiency through technology, data utilization, artificial intelligence, and digital alternatives, as well as reducing costs associated with cybersecurity and fraud.
